we are appying for a business loan tomorrow

redballoon_2

What should i expect in terms ogf questions?

We have our business plan prepared

jonesMUFCforever

Do you have security to offer if requested.
How much are you applying for?
Is it a new business or existing one. If existing have 3 years a/c's ready for business manager to look at.

redballoon_2

Its a loan of 22,000 for a franchise.

Seraphim

In addition to a business plan, the bank will probably want to see financial projections for the company including income, balance & cash flow projections.
They will also do a credit check on either yourself (if a sole trader) or the directors (if a partnership). So, you will probably need some personal identification and a copy of your NI number. If you are a Limited company, the bank may ask to see your certificate of incorporation.

Most bank managers will also want to know a bit about your company and about the directors. Most of the questions should be centred on your business - what the money will be used for, financial projections etc. Don't be too worried about these questions! Be realistic about what you say and what you are projecting. Depending on the manager, they may also go though your business plan with you there and then. Be prepared to clarify some points and to explain bits of your presentation. Otherwise, they will ask for a couple of days to go through your plan. Don't be too worried either way - it depends on the preference and experience of whoever you are talking to. If they want a couple of days to look over the plan, ask when you will be able to meet again to discuss the business plan and loan decision.

Be patient and work with the bank as a good relationship is very important and you need to get off on the right foot. If you need a quick decision tell them that upfront and your reasons - just because you want to know right away is not a good enough reason If you push too hard however, they will be wondering why you want to move so fast and will go through your plans with a fine tooth comb as they may be worried you are glossing over something, or you haven't disclosed something important.

Good luck

redballoon_2

Yes I have done all the profit and loss, cash flow forecasts etc...

I think our business plan says it all

jonesMUFCforever

redballoon wrote:

Yes I have done all the profit and loss, cash flow forecasts etc...

I think our business plan says it all

I really wouldn't go into a meeting with a business manager with the attitude of 'our business plan says it all'!!
All that is, is a piece of paper to make your application look good. Well you have to convince the business manager that you are a good person to lend to and the initial interview he/she will want more from you than just a business plan that says it all.

redballoon_2

Sorry, what i meant by "our business plan says it all" was that it answered all of what Seraphim said. It just contains all the details needed.

Seraphim

Redballoon....how did it go?

jonesMUFCforever

Not well I presume as the OP has not been back here.